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Catalonia will be the only Autonomous Community in Spain whose part of the Spanish Liquidity Point (FLA) will be subject to extra control measures. "It is arbitrary discrimination" against Catalan citizens and the Government's suppliers, stated current Catalan Finance Minister Andreu Mas-Colell this Tuesday and announced that the Government will take the measures before the Spanish Supreme Court. Spanish Finance Minister Cristóbal Montoro justified the imposition of "specific and additional controls" to guarantee "transparency" and ensure that “the FLA won’t fund pro-independence whims”. Mas-Colell accused Spain's executive of trying to take political advantage of an "ordinary procedure between administrations" and urged the Spanish government to pay the pending 3,034 million euros from the FLA before the end of the year. 

Spanish Finance Minister Cristóbal Montoro warned that Catalonia will have access to the 3,034 million euros from the Spanish Liquidity Point (FLA) after the control extra measures imposed by the Spanish executive "are accomplished". Last Friday, the Spanish government announced specific control measures for Catalonia "to guarantee" that the FLA's money "won’t fund pro-independence whims". According to Montoro, the Catalan government "shouldn't distract the attention" and should correctly administer the citizens’ money. In order to increase the control over Catalonia's finances, Montoro announced that the Bank of Spain, the Comptroller General's Office and the National Institute of Statistics will investigate the 1,300 million euros that Spain's executive believes wasn't properly accounted for last year.

The Spanish government will impose special conditions on Catalonia when transferring funds from the Spanish Liquidity Point (FLA). The aim is to guarantee the “transparency” and “the legal compliance of the payments” as well as “make sure that the funds are destined for the planned activities”, stated Spanish vice-president Soraya Sáenz de Santamaría this Friday. She justified these “specific and additional controls” due to “Catalonia’s singularity” and “the non-fulfilment of its obligations”. Catalonia is set to receive 3,034 million euros from the FLA, which will be subject to these new measures. Current Catalan Finance Minister, Andreu Mas-Colell, responded that the transferring of FLA funds “shouldn’t be conditioned” to whether the Spanish government “likes the Catalan politics or not”. He added that the “dramatisation” of the announcement is part of the 20-D electoral campaign.

The proportion of investment earmarked for Catalonia in next year’s Spanish budget will be 10.7% of the total, a figure that the Catalan government spokeswoman, Neus Munté, considers totally insufficient. “It is far from the 19.8% Catalan contribution to the Spanish GDP or from the 16% that citizens living in Catalonia represent”, she said on Tuesday after the Spanish government defended the figures in the Spanish Parliament in Madrid. Munté regretted that cultural investment in Catalonia will plummet: the Spanish government will spend three times more money on three museums in Madrid than on all the museums of Catalonia. According to the Spanish Minister of the Treasury, Cristóbal Montoro, the budget is “what Spain, its economy and its citizens need”.

The Spanish Government has presented its budget for 2016 and once again its investment in Catalonia is very far from being in line with the Autonomous Community’s GDP or population share within Spain. According to the planned budget for next year presented this Tuesday (many months in advance for electoral reasons), the Spanish Government plans to allocate only 10.7% of its territorial investment to Catalonia, even though the Catalan economy represents 19% of Spain’s overall GDP and Catalans make up 16% of Spain’s population. The amount planned for 2016 is however a bit higher than that allocated for 2015, which was only 9.5% of Spain’s total, the lowest in many years and widely interpreted to have been in retaliation for independence claims. The amount for 2015 was €1,072.3 million and that for 2016 is €1,179.5 million, which means a 10% increase (+€107 million) but is still one of the lowest investments in decades, both in percentage and absolute terms. Nevertheless, the Madrid-based media has focused on this increase, presenting Catalonia as a clear winner and forgetting about the extremely low investment levels from 2015 and 2016.

Despite the fact that all the Autonomous Community governments that are not run by the People's Party (PP) requested the Spanish Executive  – run by the PP – to allow them a greater deficit in 2016 and that Spain's independent fiscal authority Airef also recommended granting regional governments greater deficit targets for next year, the Spanish Finance Minister, Cristóbal Montoro, has rejected doing so. In 2016, the Autonomous Communities will have to close their budgets with less than a 0.3% deficit, "an absurd" and "unrealistic" figure according to the Catalan Finance Minister, Andreu Mas-Colell, who was recently awarded an honorary PhD in Economics by the University of Chicago. The Catalan Government asked for a 0.88% deficit target for 2016. Besides this, next year the Catalan Executive will receive €1.2 billion that should have already been transferred by the Spanish Executive but was not, due to Montoro's tax revenue miscalculations. In addition to this, since economic activity is growing, the Spanish Government will increase the Catalan Executive's funds by €700 million each year from 2016 onwards.

The Catalan Government registered a 2.58% deficit in 2014, according to the Spanish Finance Minister, Cristóbal Montoro. The Catalan Finance Minister, Andreu Mas-Colell, already unveiled this figure a few days ago, but explained that it was including the public bailout of a highway charged on 31 December 2014, as otherwise the figure would be 2.13%. In any case, Catalonia's deficit is higher than the 1% target unilaterally imposed by the Spanish Government on the Autonomous Communities. The Catalan Government protested months ago, saying that it was not a realistic target, that it was unfair since it was not in line with spending responsibilities in the management of basic public services, and that it was went against the Budget Stability Law. The Catalan Government took it to the Constitutional Court but the verdict has not been issued yet.

The Catalan Government has formally requested €9.46 billion in loans from the Liquidity Fund for the Autonomous Communities (FLA), run by the Spanish Finance Ministry, to face debt payments and other obligations during 2015. This is the only way that the Spanish Government authorises the Catalan Executive to request liquidity as it has banned Catalonia’s access to financial markets to obtain additional funds, as many governments do when they issue bonds or ask for loans. Therefore, the FLA has become the Catalan Executive’s only bank and a source of funds that must be returned. However, for the first time this year, the Spanish Government will not make money on the FLA and has set a 0% interest rate, which will have a €300 million positive impact on the Catalan Executive’s budget.

The Spanish Finance Minister, Cristóbal Montoro, has confirmed a new fiscal measure to increase the Autonomous Communities’ revenue, benefiting the Catalan Government as well. After the Council on Fiscal and Financial Policies (CPFF) held on Tuesday evening, Montoro confirmed that interest rates will be set at 0% for the loans given to the regional governments since 2012 through the Liquidity Fund (FLA). The measure will also be in place for 2015. However, the Autonomous Communities that have already met the deficit targets will also be granted a 0% rate for 2016 and 2017. The Catalan Government welcomes the measure but is sceptical about its details. The Catalan Finance Minister, Andreu Mas-Colell, demanded an entirely new funding scheme, since the current one expired a year ago. Montoro is not renewing the inter-territorial funding scheme and instead is using this loan system, which obliges regional governments to return the transferred funds.

The Spanish Finance Minister, Cristóbal Montoro, has announced new measures “to reduce the interest rates” paid by the Autonomous Community governments, including that of Catalonia. A few hours early, Spanish Finance Ministry sources told the CNA that the interest rates of the loans given to the regional governments through the Liquidity Fund (FLA) and the fund to pay providers would soon be lowered to 0%. Instead of modifying the pre-crisis-designed inter-territorial funding scheme, which legally expired a year ago, or authorising the Autonomous Communities to address the financial markets, the Spanish Government has been issuing loans with high interest rates to fund the regional executives. The Catalan Finance Minister, Andreu Mas-Colell, was sceptical about the announcement and urged the Spanish Government to approve a new inter-territorial funding scheme.

On Wednesday, the Spanish Finance Minister, Cirstobal Montoro, refused to start negotiating and launching a new funding scheme for the Autonomous Communities before 2016, even though the current model had to be reviewed before January 2014. The Catalan Government has been insisting on its review since 2012, since the system does not properly fund basic public services such as healthcare and education in times of economic crisis, areas which are entirely managed by the Autonomous Communities. In addition, Catalonia suffers a permanently high fiscal deficit: each year Catalan taxpayers have to give away some 8.5% of Catalonia’s annual GDP to fund services and infrastructure in poorer regions in Spain. The problem is that after such transfers, public services in the poorer parts of Spain have more money per inhabitant than the Catalan ones and basic infrastructure in Catalonia is not built. The Spanish Government has been postponing the new model, despite the territorial tensions and the self-determination demands.

On Friday, in Badalona (Greater Barcelona), the Secretary General of the PP, María Dolores de Cospedal, launched the idea to form a wide-spectrum coalition against secession in the next Catalan elections, which should unite all of the parties opposing independence from Spain. However, it has been rejected by the main parties which were targeted, and only the Spanish nationalist UPyD, which gets marginal results in Catalonia, has welcomed the initiative. According to Cospedal, this united list should bring together the PP (running the Spanish Government), UPyD, the Catalan Socialist Party (PSC), the anti-Catalan nationalism and populist C's, and the Christian-Democrat UDC, which is part of the two-party centre-right pro-Catalan state coalition CiU, which runs the Catalan Government. The PSC and UDC – which recognise Catalonia's right to self-determination - have totally rejected the idea. Even so, the PP's leader stated that "in Catalonia there is an undercover dictatorship", pushing for "a single way of thinking".

The Spanish Finance Minister, Cristóbal Montoro, did not hesitate to link the fiscal fraud confessed by the former Catalan President, Jordi Pujol, to the rest of the politicians supporting Catalonia's independence. In a public hearing before the Spanish Parliament, as the manager of the country's Tax Agency, Montoro said that "those who radicalise their political speeches, pretending to challenge the State, are at the same time making money out of it and earning personal benefits", putting Jordi Pujol together with all those supporting independence. In addition, Montoro stated that the Spanish Tax Agency will act against Pujol and launch "administrative and judicial" processes. The Catalan Government accused Montoro of using the State's structures to back "partisan interests" instead of merely "fighting fraud". Furthermore, the CiU criticised Montoro for linking Pujol's case to the Catalan self-determination process.

On Thursday, the Catalan Finance Minister, Andreu Mas-Colell, admitted that Catalonia will not be able to meet the strict 1% deficit target imposed by the Spanish Government for 2014. In fact, the Catalan Executive had previously warned on several occasions that this deficit target was not realistic, despite the great austerity efforts undertaken over the past four years. In addition, despite Spain's economic recovery of 2014 – which is led by Catalonia – and therefore the increase of taxable activity, the Spanish Government will reduce the Catalan executive's funds by €500 million this year while the deficit target becomes stricter. On Wednesday, the Catalan President, Artur Mas, already stated that, considering the austerity measures adopted since 2011, further budget cuts cannot be undertaken in 2014 without dramatically damaging basic public services such as healthcare and education. Instead of relaxing the deficit target or transferring pending funds and debts to the Catalan Government, the Spanish Finance Ministry will reduce the interest rate that the Autonomous Communities have to pay back to 1% for the loans of the Liquifidity Fund (FLA).

On Tuesday, the Spanish Finance Minister, Cristóbal Montoro, rejected to review the funding scheme of the Autonomous Communities to grant them more resources, despite the fact that the Catalan Government is under-budgeted. On Wednesday, the Spanish Finance Ministry downplayed Catalonia's fiscal deficit by issuing the so-called fiscal balances, which calculate the inter-territorial fiscal transfers, posting a significantly low Catalan contribution. According to the Spanish Government's new calculations, Catalonia gave away €8.46 billion in 2011, representing 4.35% of its GDP. The figure is significantly lower than the Catalan Government's calculations: €15.01 billion and €11.09 billion, using two complementary methodologies used by the Spanish Executive in 2008 and agreed among independent university experts.